Foreign promise is huge
STEPHEN CRANSTON: How Coronation is faring
I’m certainly impressed by Coronation’s track record and the calibre of the team; it has maintained a collegiate, unstuffy culture
I still wonder whether 300 people sitting in a rented office deserve the same market cap as more asset-intensive businesses such as Massmart or Hyprop. I know that assets aren’t the only factor for valuing a company. If anything, as the focus moves towards capital-light investment models, too much of a lumbering balance sheet is seen as a drag. Of course, Coronation Fund Managers has had a substantially higher market cap in the past than its current R25bn — sometimes around R60bn. As usual, in the latest financial year to September Coronation paid out all its free cash in dividends. It has negligible demands for capital, unless you count the generous, sometimes opaque, remuneration policy. There is none of the expectation that accompanies the launch of a new bank or insurance company at Discovery. I found the launch of a global equity fund by Coronation lifer Louis Stassen exciting, but it is not quite the same. Asset management is a notoriously difficult industry for acquisitive gr...
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